CPP Announces Voluntary Separation Incentive Program as One Measure to Address State Budget Cut
*Editor's Note: Based on revised projections from the CSU, the estimated reduction to Cal Poly Pomona's base operating budget was revised to $18.3 million on Feb. 5, 2025.
In January, Governor Gavin Newsom proposed a state budget that includes a 7.95 percent ongoing reduction in funding to the California State University for fiscal year 2025-26. The CSU estimates that this will reduce Cal Poly Pomona’s base operating budget by $18.3 million* for the year.
This proposed decrease in state appropriations will have a very significant impact on Cal Poly Pomona’s operations and services and follows cuts to the campus allocation for fiscal year 2024-25, as well as rising fixed costs and unfunded mandates.
CSU Chancellor Mildred Garcia notes the proposed cut equates to a $375 million reduction to the CSU system and “will have significant real-world consequences, both in and out of the classroom.” CSU campuses are expected to take commensurate actions to permanently reduce costs.
On Jan. 30, Cal Poly Pomona announced a 2025 Voluntary Separation Incentive Program for eligible state-side employees as a first-phase strategy to address the budget gap. The terms of the program will closely resemble the terms offered in 2020 when CPP deployed a Voluntary Separation Incentive Program (or “Early Exit”) to reduce personnel costs and balance the institutional budget. The 2020 program addressed a $20 million budget gap due to a reduced state allocation to the CSU. Union partners were notified of the details of the new program.
“We recognize the departure of valued colleagues and personnel will have implications for our working environment and operational capacity,” said President Soraya M. Coley in Jan. 30 email to faculty and staff. “Taking these measures now will help us prepare for further reductions that may result from the finalizing of the 25-26 state budget later this summer.”
“I have every confidence in our ability to innovate and to find inspiration from our shared institutional history of resilience and unwavering commitment to helping our students achieve their dreams of success,” she said.
Enrollment Challenges Add to Budget Challenges
In addition to budget challenges, CSU campuses, including Cal Poly Pomona, are facing significant enrollment challenges. While the university met its enrollment target for the current 2024-25 academic year, freshmen applications for fall 2025 declined 5.46 percent from the prior year. CPP’s yield rates — the percentage of admitted students who ultimately enroll — have also been on the decline: from 2018 to 2024, yield for freshman dropped from 19 percent to 12 percent, and for transfer students from 42 percent to 28 percent. Several other CSU campuses have seen significant declines in enrollment. These declines are attributed to changing demographics, enrollment declines at community colleges resulting in fewer transfers to the CSU and shifting attitudes about the value of a four-year degree. According to the California Legislative Analyst, the number of high school graduates peaked in 2023-24 and is projected to decline by 14 percent by 2031-32. The results of these trends are increased competition for students among higher education institutions.
Considering Cal Poly Pomona’s operating budget is supported by both a state allocation (54 percent) based on the university’s enrollment and student tuition and fees (46 percent), the university is taking a number of steps to strengthen its ability to meet enrollment targets.
Where to Find Budget Information
The university will continue to provide updates on the budget and on the impact of strategies to address budget deficits via the Financial Transparency website and other channels of communication. Presentations on the budget from the November 2024 Budget Town Halls can also be found on the website here.